The rise, fall (and rise again?) of crypto currencies in the UAE



it's been a wild ride for cryptocurrencies over the last year or so but what happens next that's what we're here to find out on today's edition of inside a bee I'm Jeremy Lawrence and I'm joined here in the studio by Lubna Hamden lubna we had a conference last week talked about blockchain and crypto currencies for a start of Academy we went through so many aspects of it let's get down to the negative claims first that surrounded crypto currencies and what people have said yeah so it's no secret that there's been a lot of negative a lot of negative claims surrounding crypto currencies and from the likes of Bill Gates who said the Kryptos indirectly or actually fairly directly have resulted in deaths so he said the main feature of crypto currencies is their anonymity and he doesn't think that's a good thing the government's ability to find money laundering and tax evasion and terrorist funding is a good thing and right now cryptocurrencies are used for buying drugs so it is a rare technology that has caused death that's in a fairly direct way and he wasn't the only one we had the hotmail founder Sabir Bhatia who said the underlying business model that I have looked at is fraud cryptocurrencies are nothing more than white papers a hope in the way the world will be okay Yogesh mehta from this region patch creme yeah so Yogesh Mehta was of course the CEO of mature comital East he also said he wouldn't put $1.00 in crypto currencies or into Bitcoin because he's not the gambling kind he said he's kind of a conservative person with regards to investing money for quicker returns he doesn't believe in quick returns okay and yet despite all that dr. Habib al mullah who gave a keynote address at our starts of Academy he said that crypto zoom currency sorry crypto currencies a blockchain still has a very big future yeah definitely he he literally said crypto currencies and blockchain are the future he said the only reason that there's such negative claims and such negative energy around the topic is because regulators and governments are afraid of being unable to control these digital platforms and these digital currencies so he literally said you will hear many warned the cryptocurrencies are risky they're not regulated they're being used in illegal activities I would simply say do not listen to these claims they stem from the fact that regulators and governments are struggling to have control over them okay so balanced assessment there the problem is but also the potential what are the concerns though as things stand so some of the concerns lie in areas such as Securities and commodities law taxes international transactions anti money laundering those are just several areas but yeah dr. Habib he said that kryptos will not only prevail but they will eventually dominate and change the way the business environment works forever so presumably he thinks that regulation will be the answer to that yeah he thinks that they will ultimately be regulated the government's and regularly regulators will have no choice but to accept them okay and initial coin offerings icos hard to understand for some people because they're come in many shapes and sizes it was a big topic as well at the academy tell us about that so we had to buy us young who is the head of hydrocarbons at Dubai Gold and Commodities Exchange he also sits on the global blockchain Council of Dubai and he basically said that I cos are nothing more than unregulated IPOs yeah he's saying no what no one is saying with what the rules are or how they work but regulation is what's going to help us avoid that right because he also said that they can be very a really useful way for small companies to raise revenue yeah and reach investors they wouldn't otherwise reach but as you say they need this regulation yeah and I mean there's been over 13 billion dollars in ICO activity in 2000 and 2018 I saw that report this week it was incredible really because we know that also another reports that over a thousand cryptocurrency projects globally have failed this year and yet more happening all the time so clearly there's an appetite for that as he said the Academy as well but then again it is how it is just like in any other field so it's not just cryptocurrencies that fail or succeed like that in any other industry actually Tobias young he compared it to the analogy of the internet before the dot-com yeah didn't he yeah he definitely he said if we take an analogy of the internet bubble the crypto space is probably around the 1997 mark at the moment so there's a bit of time before we see everything change right so when it comes to these ICS it seems that the asset-backed tokens are the ones that are more safe doesn't there because some of them there's no asset behind it but then you do have asset like tokens exactly and that's exactly what dr. Habibullah was saying he's he urges investors to invest in asset backed tokens as opposed to other cryptocurrency you know to town backed by tangible assets such as bonds real estate shares he said basically investing in asset back tokens is less risky because the tokens are supported by tangible underlying assets that have an intrinsic value such as company shares or even property okay so I mean he's hot he's hard to get into this all in just a few minutes but what seemed to come out of that that morning that we were both at is that it's a very new space it's not really regulated a minute there have been lots of problems but also it offers huge potential across so many different industries for cryptos and more widely the use of blockchain and once regulation comes into play which it probably will do what it definitely will do we really will start to see the market move forward there's no reason that it won't eventually be regulated I mean just like what happened with the dot-com bubble yeah great ok lovely no thanks for running this through that it was a fascinating day hard to get our head around sometimes but it was interesting dr. B or Molly as usual was was really insightful so we'll keep you abreast of any further information as we get it please do join us every weekday at 10 a.m. and subscribe comment and share we'll see you next time bye

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